EU: $44B current account surplus in Q4 2018

By Muhammed Ali Gurtas

ANKARA (AA) - The EU's current account balance posted a surplus of €38.6 billion (around $44 billion) in the last quarter of 2018, the bloc's statistical office reported Friday.

EuroStat said the current account surplus was 1% of the 28-member bloc's gross domestic product (GDP) in the October-December period last year.

On a yearly basis, the EU's current account surplus recorded a decline, as the figure was €57.2 billion (some $67.5 billion) in the same months of 2017.

The current account surplus to the GDP ratio was 0.9% in the third quarter of 2018, and 1.5% in the fourth quarter of 2017.

In the last quarter of 2018, the average euro/U.S. dollar exchange rate was 1.14 while one euro traded for 1.18 dollars on average in the same period of 2017.

Regarding sub-categories, surplus of the goods account fell to €10.9 billion ($12.4 billion) in the October-December period, versus €34.4 billion ($40.6 billion) in the fourth quarter of 2017.

Over the same period, the surplus of the services account dropped to €42.2 billion ($48.1 billion), down from €50.6 billion ($59.7 billion) a year ago.

Among the major partners, the bloc recorded external current account surpluses with the U.S. (€67.7 billion), Switzerland (€23.9 billion), and Canada (€9.5 billion).

"Deficits were registered with China (minus €28.5 billion) and Russia (minus €13.3 billion)," the statistical office added.